Today, we will learn about the credit recovery period. The ‘credit recovery period’ refers to the time it takes for an individual to be registered as a bad credit person, such as bankruptcy, and the record to be deleted. Through this, we will learn important information about the release and record management in the case of a bad credit person. Please refer to the contents below for more information!
All Credit
Criteria for registering a bad credit person
A person’s credit rating may decrease due to default in the financial transaction process, and the person may be registered as a bad credit person. The registration criteria include delinquent loan payments for more than 3 months, delinquent payments of more than 50,000 won, and delinquent taxes of more than 5 million won.
How to check for bad credit people
You can check whether you are registered as a bad credit person at the Korea Credit Information Service or a credit rating agency, and you can check for free up to 3 times. If you are a bad credit person, your credit score may be less than 150 points.
Deactivation of bad credit person and deletion of record
After resolving the default, you can be deactivated by paying off your debt. After release, the period until the record is deleted may vary depending on the individual’s circumstances.
If the record remains after the release of the bad credit person
Even if the bad credit person is released, the record may remain for a certain period of time. This period is called the credit recovery period.
Disruptor of financial transaction order
If you commit a crime during a financial transaction, you will be treated the same as a bad credit person, and the record may remain for a certain period of time before being deleted.
Credit Recovery Committee Debt Adjustment System
The debt adjustment system that bad credit people can utilize includes personal rehabilitation, personal bankruptcy, workout, and pre-workout.
Registration period for bad credit people
Even if the bad credit person is released after 90 days of registration, the record will be kept for 1 year and may be deleted after 1 year. If the registration period exceeds 1 year, the deletion period is applied as 2 years.
Statute of limitations for bad credit people
If the creditor’s rights are not exercised for a certain period of time, the right to the debt will be naturally extinguished. This may result in the deletion of the record.
In the above post, we learned about the ‘credit recovery period’. It provided important information for the release and record management in a credit default situation. The credit recovery period refers to the time it takes for the record to be deleted after registering as a credit defaulter. In order to restore personal credit, it is important to maintain steady and creditworthy financial transactions and avoid multiple debts and delinquencies. In addition, it is also a good idea to utilize the debt adjustment system of the Credit Recovery Committee. Please check the information necessary for credit recovery in a credit default situation and take appropriate measures.